Economist warns AI cash-optimizing assistants could spark bank deposit drain

In an insights post, Apollo’s chief economist Torsten Slok warned that personal AI assistants could trigger a mass withdrawal of deposits from conventional banks. The agents, exemplified by Meta’s Muse and the Instinct platform, identify low-return checking or savings balances and steer users toward fintech accounts—such as those offered by Adelphi—that promise rates as high as 5%. Should a significant number of households adopt these recommendations, banks could see a sharp reduction in the inexpensive deposits that fund their loan portfolios.

Apollo, which already manages a vast private-credit operation, noted the potential competitive threat to banks. The firm declined further comment when approached. Recent reports indicate that firms like Amazon are restricting AI agents from accessing their platforms, citing concerns over data handling and terms-of-use violations.